Cost Accounting Principles
This two-day, elective course discusses the basics of cost accounting and how it differs from managerial, financial, or project accounting and why it is useful to government contracting. By understanding the various costs associated with a project, program, product, or service, participants can derive ways to create efficiencies through analysis of the cost components. This tool is most often used in budget preparation, but may also be used to analyze issues with where money is actually being spent.
Participants will be made familiar with the primary methods of cost accounting including standard costing systems, activity based costing, throughput accounting, and Cost Volume Profit (CVP) analysis. They will also be given an overview of the major cost accounting systems on the market today. Attendees are encouraged to know which system is used in their office and bring questions.
• Determine fixed and variable costs associated with a product or service
• Use fixed and variable costs to determine the break-even point (BEP) or the product or service
• Understand direct and indirect costs
• Provide detailed cost analysis of cost drivers
• Apply cost accounting techniques to a sample scenario to determine which costs are allocated to which product or project. Perform cost analysis on the costs to determine the BEP